• Hudson Corporation should liquidate the divisions which are not doing well in the market and expand those which are profitable.

VI. Conclusion

Hudson Corporation should liquidate the divisions which are not doing well such as the Mervyn’s division (Asset Sale). Mervyn’s performance in the recent years has been disappointing. Revenue declined 3.2 percent because Mervyn’s clothing line was bland and narrow. According to selected data for Mervyn’s Division, its operating profit was 280 (’97), 153 (’96), 100 (’95), 206 (’94), 179 (’93), 284 (’92) in millions of dollars were fluctuating which indicates that Mervyn’s financial standing were unstable. This is also evident in their number stores which declined from 300 stores in 1996 to only 269 in 1997.

Hudson Corporation, on the other hand, should expand their Target Division after liquidating Mervyn’s division. Hudson’s Target Division is its most profitable division, it’s an upscale discount store that provides good quality, and family oriented merchandise at attractive prices. Target’s performance has been strong and consistent across merchandise categories and geographical regions during the last several years. Targets micro-marketing program helped improve its merchandise assortments. Micro-marketing is for tailoring merchandise assortments to customers’ needs in individual stores or markets based on regional demographics and ethnic factors. In this case, Department store division should try to adapt Target’s micro-marketing strategy against its conservative promotional strategy to help improve their financial situation.